How Compound interest benefits you
Compound interest is the process where the interest earned on an initial principal amount also earns interest over time. Unlike simple interest, which is calculated only on the original amount, compound interest is calculated on the initial principal as well as on the accumulated interest from previous periods. When added to a savings pot this can significantly increase the amount earned, however when a lender adds this on to a loan this can negatively impact the borrower.
Find out more about how Compound interest works and why it could be beneficial for you.
Why use a Compound Interest Calculator
A compound interest calculator is a valuable tool for understanding the potential growth of your savings or investments. By inputting details such as the initial amount, interest rate, the number of years left to grow and any additional monthly payments that will be added, the calculator helps you see how much your money can grow over time. This can be especially useful for financial planning, as it allows you to experiment with different scenarios and see how adjustments to factors like the interest rate or the time period can impact your overall earnings.
See for yourself how powerful compound interest can be for your savings and start your financial planning now.
